President-elect Donald Trump is considering the possibility of declaring a national economic emergency to enforce his extensive tariff policies, as reported by four sources familiar with the situation to CNN. Such a declaration would grant Trump the authority to establish the tariff program that was a central aspect of his presidential campaign, utilizing the International Emergency Economic Powers Act, also known as IEEPA, which empowers the president to regulate imports during times of national crisis.
Upon the release of the CNN report on Wednesday morning, stock futures experienced a decline, while the U.S. dollar strengthened against most other currencies. The sources mentioned by CNN indicated that a final decision has not yet been made regarding the declaration of a national emergency. Trump’s team is exploring alternative legal arguments, including specific provisions of U.S. trade law, according to CNN’s sources.
The CNBC’s request for comment from the Trump transition team went unanswered. During his campaign, Trump frequently advocated for imposing taxes on imports, proposing tariffs as high as 60% on Chinese goods. Shortly after his election victory, he announced plans to increase tariffs on Chinese imports by 10% and impose 25% tariffs on products from Canada and Mexico.
A report by The Washington Post suggested that Trump might refine the focus of his tariff policies, a move that was well-received by Wall Street. However, the president-elect later refuted this report. For more details, you can refer to CNN’s complete story.
